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Employee Benefit Plans
 6 Months Ended
Jun. 30, 2021
Employee Benefit Plans  
Employee Benefit Plans

12.     Employee benefit plans

Defined Contribution Plans

We have a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code covering all U.S. employees and defined contribution plans for other Incyte employees in Europe and Japan.  Employees may contribute a portion of their compensation, which is then matched by us, subject to certain limitations. Defined contribution expense for the three and six months ended June 30, 2021 was $4.3 million and $8.4 million, respectively. Defined contribution expense for the three and six months ended June 30, 2020 was $3.3 million and $6.6 million, respectively.

Defined Benefit Pension Plans

We have defined benefit pension plans for our employees in Europe which provide benefits to employees upon retirement, death or disability. The assets of the pension plans are held in collective investment accounts represented by the cash surrender value of an insurance policy and are classified as Level 2 within the fair value hierarchy.

The net periodic benefit cost was as follows (in thousands):

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Three Months Ended

​

Six Months Ended

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​

​

June 30,

​

June 30,

​

​

    

2021

​

2020

    

2021

​

2020

    

Service cost

 

$

1,997

​

$

1,477

 

$

3,952

​

$

2,934

 

Interest cost

 

​

23

​

​

47

 

​

45

​

​

93

 

Expected return on plan assets

 

​

(15)

​

​

(31)

 

​

(30)

​

​

(61)

 

Amortization of prior service cost

 

​

54

​

​

53

 

​

108

​

​

107

 

Amortization of actuarial losses

​

​

288

​

​

167

​

​

576

​

​

334

​

Net periodic benefit cost

 

$

2,347

​

$

1,713

 

$

4,651

​

$

3,407

 

​

The components of net periodic benefit cost other than the service cost component are included in other income (expense), net on the condensed consolidated statements of operations. We expect to contribute a total of $5.3 million to the pension plans in 2021 inclusive of the amounts contributed to the plan during the current period.